There are three distinct processes that need to be completed before gas can flow into National Grid’s National Transmission System (NTS):
- The physical connection to the NTS must be completed and commissioned and the measurement equipment must be validated;
- The operational Network Entry Agreement (NEA) detailing the conditions for gas to flow must be signed; and
- Shippers must have obtained sufficient transmission entry capacity via the relevant entry capacity mechanisms and have the necessary contractual rights to use that capacity.
1. Physical Connection
National Grid will provide a connection to the NTS using the methodology set out in our publication "National Grid NTS statement of principles and methods to be used to determine charges for National Transmission System connection charges" (Licence Condition 4B Statement)
The ‘Transmission Connection Options’ page outlines the services and equipment that National Grid can provide with regard to the provision of a physical connecting point. Though you may decide not to use all of these services, the details provided will serve as a useful guide to the steps a developer might typically take in carrying out such connection works.
It is also important to draw your attention to the capacity process described in Section 3 below.
2. Network Entry Agreement (NEA)
A Network Entry Agreement (NEA) sets out the technical and operational conditions for the connection and is required by the Uniform Network Code (UNC). The NEA is agreed between the Delivery Facility Operator (DFO) and National Grid and is normally discussed with the future operator of the entry facility in parallel with the connection process (see above).
The typical NEA will specify:
- The point of entry (marked on a diagram).
- The plant and equipment, and its ownership.
- Responsibilities for maintenance and operational control of equipment.
- Gas quality specification
- Measurement arrangements
- Local Operating Procedures (LOPs)
The LOPs are day-to-day procedures and cover such items as :
- Notification of intended gas flows
- Confirmation of actual gas flows
- Site security
- Management of flow rates, pressures and gas quality
- Emergency arrangements
- Maintenance arrangements
3. Entry Capacity
For all new entry connections, the Shipper (or potential Shipper) needs to ensure that they have purchased sufficient daily capacity rights to accommodate gas entry flows from the connecting point. The provision of any necessary physical infrastructure including any extension, up rating or expansion of the NTS is undertaken by National Grid in response to Shippers’ demands for entry capacity through the auctions process.
Please note that if you are not a Shipper yourself, you will need to obtain a Shipper licence from Ofgem and accede to the UNC, or to employ the services of a licensed Shipper. Your Shipper can buy capacity on your behalf if you are not a Shipper yourself.
If you would like to obtain a list of licensed Shippers or any further information on the Shipper process, please contact Ofgem: www.ofgem.gov.uk
3.1 Entry Capacity Process
Whether the proposed entry point is a new point or an existing one, it is essential that sufficient entry capacity is secured by a Shipper in accordance with the required timescales, as National Grid may have to carry out major construction projects to enable the requested gas flows.
Where the proposed entry point is at an existing entry or storage point, unutilised capacity may be available. However, for new entry points or those requiring capacity above that currently available, Shippers need to signal their requirement for “incremental” capacity. This is done via the Quarterly System Entry Capacity (QSEC) auctions.
Incremental entry capacity typically has a 42 month lead time from the date of the QSEC auction and therefore needs to be considered early in the planning phase of a project. In the case of a new entry point, National Grid may also have to request a licence change for Ofgem to undertake a consultation under section 23 of the Gas Act to modify its Gas Transporter licence in respect of the NTS. This process will need to be undertaken before investment for new points is undertaken.
The mechanism, including the QSEC auction, that Shippers use to obtain entry capacity at new connections is set out in National Grid’s “Incremental Entry Capacity Release Methodology Statement” and the UNC.
Getting Connected – Typical Programme of Work
National Grid will enter into contractual discussions for the design and build of the connection facilities. This process will typically take 24 – 36 months from initiation to completion. Please note that this timescale is shorter than the typical timescale for delivering incremental entry capacity on the NTS (see above) and thus it is very important that capacity needs are considered from the outset.